Inventory Costing Methods—Perpetual MethodArrow Company is a retailer that uses the perpetual inventory system. August1Beginning inventory80units of Product A @$1,600total cost 5Purchased100units of Product A @$2,116total cost 8Purchased200units of Product A @$4,416total cost 11Sold170units of Product A @$4,800total sale Calculate the inventory cost of item A on August 11 (after the sale) using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.Do not round until your final answers. Round your final answers to the nearest dollar.A.First-in, first-out Ending InventoryAnswer B.Last-in, first-out Ending InventoryAnswer C.Weighted-average Ending InventoryAnswer

Name: Inventory Costing Methods—Perpetual MethodArrow Company is a retailer
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Description: Inventory Costing Methods—Perpetual MethodArrow Company is a retailer that uses the perpetual inventory system. August1Beginning inventory80units of Product A @$1,600total cost 5Purchased100units of Product A @$2,116total cost 8Purchased200units of P

Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Answered: Arrow Company is a retailer that uses…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 53E: Effects of Inventory Costing Methods Jefferson Enterprises has the following income statement data...

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Inventory Costing Methods—Perpetual Method

Arrow Company is a retailer that uses the perpetual inventory system.

August	1	Beginning inventory	80	units of Product A @	$1,600	total cost
	5	Purchased	100	units of Product A @	$2,116	total cost
	8	Purchased	200	units of Product A @	$4,416	total cost
	11	Sold	170	units of Product A @	$4,800	total sale

Calculate the inventory cost of item A on August 11 (after the sale) using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.

A.	First-in, first-out
	Ending Inventory	Answer
B.	Last-in, first-out
	Ending Inventory	Answer
C.	Weighted-average
	Ending Inventory	Answer

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